Minimum Wages & Fast Food Employers

Fast Food Employers & Minimum Wage Regulation in Ireland

BUIRA Conference 2009

Michelle O’Sullivan, University of Limerick

Michelle.osullivan@ul.ie

Tony Royle, NUI Galway

Regulation in fast food

• Joint Labour Committee system – equivalent to Wages Councils

• Catering has 2 JLCs – Dublin & rest of country– Minimum wages through Employment

Regulation Orders (EROs), overtime, minimum conditions

• JLC rates 7-10% higher than National Minimum Wage

Challenge to Catering JLC

• Formation of Quick Service Food Alliance (QSFA)

• Constitutional challenge to Catering JLC December 2008– setting of EROs is invalid – law making

powers vested in Parliament – setting of EROs breaches European

Convention of Human Rights

Research questions

• Why has a new body representing fast food employers been formed?

• Why has this body challenged minimum wage regulation?

• What are implications of the constitutional challenge?

Methodology

• Data collection phase

• 5 interviews:– QSFA, Irish Business & Employers

Confederation, Vintners Federation of Ireland, McDonalds Ireland & Ireland’s largest trade union, SIPTU

Factors

1. Desire for better representation

2. Enforcement of JLC regulations

3. Effects of JLC regulations on business

4. A ‘manageable’ cost

5. Existence of NMW & legislation

6. Frustration at operational issues

Implications of Challenge

• This is second constitutional challenge

• First by Irish Hotels Federation against Hotels JLC– Settled out of court

• Current challenge unlikely to be settled– New body; wants JLC abolition

Implications of Successful Challenge

• If unsuccessful, employers want reform

• If successful, union push for correcting legislation & employer lobbying of political parties

Conclusion

• Union success in improving enforcement– Timed with rising costs, economic downturn,

frustration with operation

• Backlash by fast food employers

• If challenge successful, public policy response may depend on:– Social partnership– Government in power